Berlin Election: Expropriation Debate Heats Up Ahead of September 20 Vote
Berlin, August 9, 2026 – With the Berlin state election just weeks away on September 20, the potential expropriation of real estate companies has become a central and highly polarizing issue. Chronic housing shortages and steadily rising rents have created an urgent problem in the capital, prompting widespread debate on the matter.
The Proponents’ Stance: Addressing Housing Shortages and Soaring Rents
The initiative “Deutsche Wohnen & Co. enteignen” (Expropriate Deutsche Wohnen & Co.) brought the topic into the public spotlight, successfully pushing for a city-wide referendum in September 2021. In that vote, a significant 56 percent of Berliners approved the idea of expropriating profit-oriented real estate companies owning more than 3,000 apartments in Berlin. The proposal suggests that these properties be transferred into public ownership, with compensation provided to the former owners.
The initiative bases its argument on Article 15 of the German Basic Law, which states: “Land, natural resources and means of production may, for the purpose of socialization, be transferred to public ownership or other forms of public enterprise by a law that determines the nature and extent of compensation.”
From the initiative’s perspective, new housing construction alone is insufficient to curb rising rents. They primarily attribute this trend to the profit-driven interests of publicly traded real estate companies.
Opponents’ Arguments: Cost, Housing Shortage, and Legal Concerns
Berlin’s Governing Mayor Kai Wegner (CDU) has consistently and unequivocally opposed expropriation plans. “Expropriations cost billions that we don’t have. They prevent the housing we urgently need,” Wegner stated.
Stefan Evers, the new CDU’s lead candidate, also firmly rejects the idea, asserting that “the populist call for mass expropriations only exacerbates the problem.”
The Association of Business Associations in Berlin and Brandenburg (UVB) expresses skepticism, with CEO Alexander Schirp arguing, “Expropriation does not create a single square meter of new living space.” Schirp further warns that such measures would burden Berlin’s state budget with double-digit billions, significantly impacting investments in education, infrastructure, and social services for years to come. The financial sector has also reportedly cautioned against unforeseeable burdens and potentially rising credit interest rates as a result of expropriations, alongside the threat of “years of legal disputes at all possible levels.”
The Fate of the Referendum: Limited Impact and Political Maneuvering
Five years after the referendum, little has come of it. The vote was not legally binding for the state government because the initiative did not put a concrete draft law to a vote. Had it done so, implementation would have been mandatory. The then red-green-red Senate merely appointed an expert commission, which concluded in its final report that the socialization of large housing companies in Berlin was legally possible.
The black-red Senate, in power since 2023, has since passed a “Socialization Framework Law,” which has had no practical consequences. Critics accuse the current administration of deliberately delaying the issue from the outset.
Party Positions: A Divided Political Landscape
The Left Party in Berlin has supported the expropriation initiative from the beginning. Lead candidate Elif Eralp has vowed to confront real estate companies and implement the referendum for the socialization of large housing companies. Federal Left Party leader Ines Schwerdtner has made this a condition for government participation. According to polls, the Left Party has hopes of becoming the strongest force on September 20.
The AfD, like the CDU, rejects expropriations.
The SPD’s election program acknowledges that the approval of the referendum initiative clearly demonstrates that a majority of Berliners reject the “unbridled exploitation by large housing companies.” However, the party leadership primarily advocates for rent regulation measures. State chairman and lead candidate Steffen Krach has stated that there will be no expropriations with the SPD.
Green Party lead candidate Werner Graf emphasizes his party’s commitment to implementing the referendum. However, the Green Party’s housing policy in its election program also focuses primarily on other priorities.
Federal Government Intervention: A Potential Roadblock
The federal coalition government, consisting of the CDU and SPD, has agreed to block considerations for the expropriation of corporations with large rental housing portfolios. Resolutions from the coalition committee in early July state: “In order not to endanger private housing construction, a federal law will regulate that the nationalization of private rental housing stocks through socialization laws at the state level is no longer possible.”
Is the Issue Dead? The Initiative’s Persistence
The future of the expropriation debate remains uncertain. The federal government’s announcement immediately drew significant criticism, and the “Deutsche Wohnen & Co. enteignen” initiative intends to stick to its plans. Last September, it presented a draft law for the socialization of large housing companies and is preparing a new popular initiative. If this draft gains a majority, a new state government could not ignore it.
Source: https://www.zdfheute.de/politik/deutschland/berlin-wahlkampf-enteignung-immobilienkonzerne-100.html
